ACCURACY IS GUARANTEED
ECS1601 Questions with Detailed Verified Answers
for Accuracy
Which of the following is/are correct?
a) Households are confronted with unlimited wants, but with
limited resources with which to satisfy those wants
b) The scarcity of resources necessitate households to make
choices
✓✓ both a and b are correct
Which of the following is/are correct regarding the distinction
between macroeconomics and microeconomics?
a) The price of apples at the supermarket is an example of a
macroeconomic variable.
b) An increase in the general price level (inflation) in the
economy is an example of a macroeconomic variable.
✓✓ only b is correct
A flow variable is defined as a variable that is measured over a
period. Which one of the following variables is not an example
of a flow variable?
[1] National income
[2] The balance on Sibahle's savings account
, ACCURACY IS GUARANTEED
[3] Budget deficit
[4] Total production
✓✓ [2] The balance on Sibahle's savings account
Which of the following is not an acceptable intervention by the
public sector in a mixed economy?
[1] the provision of funds for public goods such as parks and
streetlights
[2] regulation of the pricing behaviour of monopoly industries
[3] stabilisation of the economy during periods of economic
instability
[4] regulation of the price increases that result from changes in
patterns of demand and supply in the competitive market
✓✓ [4] regulation of the price increases that result from
changes in patterns of demand and supply in the competitive
market
The factors of production in an economy are ...
[1] households, capital, land, entrepreneurship
[2] government, household, firms, natural resources
[3] natural resources (land), labour, capital, and
entrepreneurship
[4] human capital, land, natural resources, technology
, ACCURACY IS GUARANTEED
✓✓ [3] natural resources (land), labour, capital, and
entrepreneurship
Which of the following are the remuneration of the factors of
production?
[1] natural resources, rent, interest, labour
[2] rent, salaries and wages, interest, profit
[3] households, land, profit, capital
[4] entrepreneur, firms, capital, labour
✓✓ [2] rent, salaries and wages, interest, profit
In the circular flow of income and spending ...
[1] savings, imports, taxes are leakages, while investment,
government spending, exports are injections.
[2] imports, taxes, investments are leakages, while exports,
investments, government spending are injections.
[3] savings, exports, taxes area leakages, while imports,
investments, government spending are injections.
[4] savings, government spending, imports are leakages, while
investments, exports, taxes are injections.
✓✓ [1] savings, imports, taxes are leakages, while investment,
government spending, exports are injections.
, ACCURACY IS GUARANTEED
In the circular flow of goods and services ...
[1] firms sell factors of production on the goods market.
[2] goods and services offered for sale on the goods market are
purchased by firms.
[3] households combine factors of production and produce
consumer goods and services.
[4] households offer factors of production in the factor market.
✓✓ [4] households offer factors of production in the factor
market.
What does the letters A, B, C and D in the figure represent?
a) A represents factors of production
b) B represents goods and services
c) C represents foreign sector
d) D represents spending by firm
[1] only a is correct
[2] only b and c are correct
[3] only b and d are correct
[4] a and b are correct, while c and d are incorrect
✓✓ [3] only b and d are correct
ECS1601 Questions with Detailed Verified Answers
for Accuracy
Which of the following is/are correct?
a) Households are confronted with unlimited wants, but with
limited resources with which to satisfy those wants
b) The scarcity of resources necessitate households to make
choices
✓✓ both a and b are correct
Which of the following is/are correct regarding the distinction
between macroeconomics and microeconomics?
a) The price of apples at the supermarket is an example of a
macroeconomic variable.
b) An increase in the general price level (inflation) in the
economy is an example of a macroeconomic variable.
✓✓ only b is correct
A flow variable is defined as a variable that is measured over a
period. Which one of the following variables is not an example
of a flow variable?
[1] National income
[2] The balance on Sibahle's savings account
, ACCURACY IS GUARANTEED
[3] Budget deficit
[4] Total production
✓✓ [2] The balance on Sibahle's savings account
Which of the following is not an acceptable intervention by the
public sector in a mixed economy?
[1] the provision of funds for public goods such as parks and
streetlights
[2] regulation of the pricing behaviour of monopoly industries
[3] stabilisation of the economy during periods of economic
instability
[4] regulation of the price increases that result from changes in
patterns of demand and supply in the competitive market
✓✓ [4] regulation of the price increases that result from
changes in patterns of demand and supply in the competitive
market
The factors of production in an economy are ...
[1] households, capital, land, entrepreneurship
[2] government, household, firms, natural resources
[3] natural resources (land), labour, capital, and
entrepreneurship
[4] human capital, land, natural resources, technology
, ACCURACY IS GUARANTEED
✓✓ [3] natural resources (land), labour, capital, and
entrepreneurship
Which of the following are the remuneration of the factors of
production?
[1] natural resources, rent, interest, labour
[2] rent, salaries and wages, interest, profit
[3] households, land, profit, capital
[4] entrepreneur, firms, capital, labour
✓✓ [2] rent, salaries and wages, interest, profit
In the circular flow of income and spending ...
[1] savings, imports, taxes are leakages, while investment,
government spending, exports are injections.
[2] imports, taxes, investments are leakages, while exports,
investments, government spending are injections.
[3] savings, exports, taxes area leakages, while imports,
investments, government spending are injections.
[4] savings, government spending, imports are leakages, while
investments, exports, taxes are injections.
✓✓ [1] savings, imports, taxes are leakages, while investment,
government spending, exports are injections.
, ACCURACY IS GUARANTEED
In the circular flow of goods and services ...
[1] firms sell factors of production on the goods market.
[2] goods and services offered for sale on the goods market are
purchased by firms.
[3] households combine factors of production and produce
consumer goods and services.
[4] households offer factors of production in the factor market.
✓✓ [4] households offer factors of production in the factor
market.
What does the letters A, B, C and D in the figure represent?
a) A represents factors of production
b) B represents goods and services
c) C represents foreign sector
d) D represents spending by firm
[1] only a is correct
[2] only b and c are correct
[3] only b and d are correct
[4] a and b are correct, while c and d are incorrect
✓✓ [3] only b and d are correct
